Beware of ResClub – Review

ResClub is a real estate MLM company. The business is headquartered in Florida and appears to have begun operations in late 2019.

Although the business was founded in 2019, ResClub did not officially begin as an MLM business until mid-2022:

Moving forward CEO and creator of ResClub is Craig Shawn Williamson.

Williamson is described in his ResClub corporate profile as

has worked for Four Seasons, Hard Rock, Fairfield, AECOM, Nicklaus Corporation, and most recently Encore Capital Management throughout her almost 20 years of expertise in the sector of branded investment luxury property. She has been working in the vacation home industry since 2003.

I believe Williamson’s first business endeavor as an MLM executive is ResClub.

Peter Jensen, the vice president of global sales for ResClub, was another employee whose name I remembered.

Jensen’s involvement with Real Rise Academy is how BehindMLM first learned about him.

We’re presuming that Jensen is no longer employed at ResClub because of his executive position there.

ResClub reduces Jensen’s prior promotion and management of MLM pyramid enterprises to

The Myresclub Team has over 30 years of effective international networking marketing expertise!

PJ has consistently been at the top of his game in network marketing, creating some of the biggest sales teams in the business’s history and, most notably with YTB Travel, producing over 3.5 billion in worldwide sales!

Jensen established himself as one of the top YTB pyramid scheme promoters.

Attorney General Jerry Brown of California filed a lawsuit against the corporation in 2008.

The company’s economic model had to be altered as a result of an out-of-court settlement, which also led to a decline in membership due to negative press.

In the middle of 2010, Jensen launched AMA Nation after departing from YTB in 2009.

After a year, in 2011, AMA closed down its MLM business and stole its affiliate’s clients.

In 2012, Jensen admitted to committing tax evasion. He received a $2.1 million fine and a 31-month jail term in 2013.

The whole sentence was not served by Jensen. He was released early and introduced RE247365 in the middle of 2014.

RE247365 was a membership pyramid scam with a real estate concept (go figure).

The end of 2014 saw the downfall of RE247365. Jensen came up with a pathetic narrative about frozen funds and fraud rather than just admitting he was conducting a pyramid scam.

Master Distributor for Direct Cellars was Jensen’s subsequent MLM position in 2016. Up to Direct Cellar’s demise in 2019, that persisted.

In the latter part of 2018, Jensen joined Xperia as a “spokesperson/consultant” when Direct Cellars was failing.

According to Jensen’s LinkedIn profile, he will hold that position through November 2021, after which Real Rise Academy and ResClub will be available.

For a thorough analysis of ResClub’s MLM potential, keep reading.

Products from ResClub

ResClub doesn’t provide any goods or services for sale.

Affiliates can only promote ResClub affiliate membership in and of itself.

Membership in the ResClub affiliate program grants access to a third-party cashback platform and a passive investing plan.

Plan of Compensation for ResClub

Affiliates of ResClub make investments in a variety of “fixed ROI” real estate-related opportunities.

ResClub’s most recent instances include:

$5000 is the minimum investment. paying a yearly 15% (pitched as a Florida real-estate investment deal)

$5000 minimum investment yielding 18% annually (pitched as a Costa Rica real-estate investment deal)

ResClub’s investing program has nothing to do with its MLM component. Instead, affiliates receive a cut of the money that consumers they recommend to ResClub’s reward network produces.

Ranks for ResClub Affiliates

The payout structure of ResClub has seven affiliate tiers.

They are as follows, along with their respective qualifying standards:

TA1: Become a ResClub affiliate and pay all dues on time each year.

TA2: Find an affiliate.

TA3: One of the affiliates you directly hired must hire another affiliate.

TA4: One of the affiliates you directly hired must hire another affiliate, who then hires another affiliate.

TA5: Find and keep 10 affiliates.

Two TA5s or above on your downline, one in each of two distinct unilevel team legs, is required for TA6.

TA7 requires that you have two downline TA6s or higher, one in each of two different unilevel team legs, plus a third unilevel team leg with a TA5 or higher.

Direct Cashback Commissions for Referrals

20% of the money given to personally recommended customers of ResClub’s cashback program goes to affiliates of the company.

Affiliates or free retail members might be referred users.

Employer commissions

Affiliates of ResClub must pay a $199 yearly fee. This charge is used by ResClub to pay hiring commissions.

ResClub uses a unilevel pay structure to monitor recruiting commissions.

An affiliate is put at the head of a unilevel team in a unilevel pay system, and each affiliate they recruited is positioned immediately under them (level 1):

New affiliates brought on by any level 1 affiliates are added to the original affiliate’s unilevel team at level 2.

If any level 2 affiliates bring on new affiliates, they are promoted to level 3, and so on down a theoretically endless number of levels.

ResClub sets a limit of six paying unilevel team levels:

Level 1 (personally recruited affiliates): $60; Levels 2 through 5: $20; Level 6: $10; Level 1 (personally recruited affiliates): $60;

Affiliates of ResClub who bring in five other affiliates will receive a $100 incentive.

Expense Commissions

Trip Commissions, which are based on the volume of booked travel, seem to be a residual commission (this is in addition to cashback generated by travel bookings).

ResClub caps down seven levels of recruiting and pays Travel Commissions through the same unilevel team that pays Recruitment Commissions (see “Recruitment Commissions” above).

TA1s are paid 35% at level 1, whereas TA2s are paid 35% at level 1 and 15% at level 2.

Level 1 TA3s earn 35%, Level 2 TA3s earn 15%, and Level 3 TA3s earn 10%.

Level 1 pay for TA4s is 35%; level 2 pay is 15%; level 3 pay is 10%, and level 4 pay is 5%.

Level 1 TA5s make 35%, Level 2 TA5s make 15%, Level 3 TA5s make 10%, Level 4 TA5s make 5%.

Level 1 pay for TA6s is 35%; level 2 pay is 15%; level 3 pay is 10%, and level 4 pay is 5%.

Level 1 pay for TA7s is 35%; level 2 pay is 15%; level 3 pay is 10%; and level 4 pay is 5%.

Comparative Bonus

A matching bonus is provided by ResClub on travel commissions, once more distributed by the unilevel team:

Associates ranking from TA1 to TA3 receive a 5% match on level 1.

Affiliates with a TA4 to TA6 ranking receive a 10% match on level 1 and 5% on level 2.

Affiliates that are in the top seven get a 15% match on level 1, 10% on level 2, and 5% on level 3.

(?) Referral Fee

The compensation structure for ResClub specifies a 5% referral fee.

No justification is given. It’s unclear what this referral fee has to do with the recruitment commissions that were previously described.

ResClub affiliate membership costs $199 per year to join.

If a ResClub associate takes part in the business’ investment program, this charge is eliminated.

ResClub Summary

The discount booking engine and real estate investment plan are the two main parts of ResClub.

The discount booking engine is the main focus of the MLM opportunity.

In discount platform MLM businesses, commissions are frequently paid on platform usage or platform access fees.

ResClub performs each.

Non-affiliates can sign up for free and earn 50% of the cashback that ResClub gets from the company that runs the platform if they utilize it.

20% of the 50% cashback is given to ResClub affiliates; this is likely deducted from ResClub’s 50% cashback portion.

Although it should be emphasized that normally travel commission margins are already quite narrow, each trip booking has its unique commission structure.

In essence, a ResClub affiliate must generate more than $199 in yearly revenue to recoup its costs.

I did find a monthly payment option under ResClub’s compensation plan, however, it was a little more expensive. However, when I went through the ResClub website’s membership procedure, the only choice that appeared was the $199 yearly option.

In any event, the bulk of ResClub affiliates will probably find it challenging to recoup their $199 in cashback and trip booking earnings.

Commissions on hiring come into play in this situation. Join, pay $199, and find others to join you. The commissions obtained through this will probably much outweigh those obtained through the discount platform (including cashback).

The risk here is that ResClub would turn into a pyramid scam if the majority of commissions it pays were linked to affiliate membership costs.

That’s what I think will happen. And the main cause of this is that retail members do not pay to access the site.

It’s a conundrum. If free members don’t use the site, ResClub runs the danger of not making any money if rank progression is related to retail subscriptions.

Due to the intense competition in the cashback industry today, ResClub probably couldn’t make money by promoting the platform to non-affiliates if it charged them to use it.

Thus, we have both pure recruiting commissions and retail cashback commissions, with the latter probably accounting for the majority of commissions paid out.

Moving on, it is obvious that ResClub’s investment plan is a securities offering.

On the promise of a set yearly ROI, ResClub affiliates sign up and deposit $5000 (although occasionally $1000 is mentioned).

Costa Rica Invest To EARN 18% Fixed ROI

ResClub Pacifico in Playas del Coco, Costa Rica, is a hassle-free, high-yield investment that requires a $5,000 initial commitment and guarantees an annual return of 18%.

According to the Howey Test, since this return is wholly passive and dependent on the work of others (ResClub), it qualifies as a securities offering (used to identify investment contracts for securities regulation).

Given that ResClub’s headquarters are in Florida, it stands to reason that most of its affiliates live in the US.

MLM enterprises must be SEC-registered to lawfully offer securities to US citizens.

No record of ResClub or Craig Shawn Williamson can be found in the SEC’s Edgar database.

This example of securities fraud is unequivocal.

ResClub asserts that its investment plan is “SEC compliant” despite not having registered with the SEC and providing passive yearly returns to US citizens.

The Securities and Exchange Act is broken when securities fraud occurs. It is absurd to claim that securities fraud is “SEC compliant.”

ResClub provides longer-term investment programs in addition to its “short-term” yearly ROI investing strategy.

These have a much higher price tag of $49,500 to $198,000 and can endure up to 30 years.

Since most investors would likely choose the 15% to 18% yearly short-term gains over the far more expensive 5% to 8% long-term investment returns, I didn’t fully discuss this topic.

It doesn’t make much sense to bother with ResClub’s long-term investments, according to math. Simply renew the short-term each year.

Given that Williamson does seem to have experience in real estate, and that ResClub has been promoting its real estate investment program (without MLM) since 2019, I don’t believe a Ponzi scheme is at play in this situation. not a full-blown one, at least.

However, it raises the question of why ResClub hasn’t filed for SEC registration.

regular return If successful, MLM Ponzi schemes can persist for a few months. Ponzi schemes with a monthly ROI in MLM can go on for years.

ResClub offers yearly returns. One cannot rule out ResClub moving fresh investment around to compensate previous investors in the absence of audited financial reports filed with the SEC.

ResClub asserts that investors are safeguarded by a “$50 million balance sheet” rather than audited financial reports submitted to the SEC.

Rental bookings and vacation rentals are ResClub’s main revenue streams. The membership investment’s value is protected by the minimum 30% equity we keep in each Club property.

The majority of the properties in the ResClub portfolio have an average scheduled hold of five years. Reserves from income and equity in properties are used to fund buybacks.

We also maintain an emergency balance sheet reserve of $50 million.

Such pledges are worthless in the absence of audited financial reports.

Another issue to think about is why ResClub’s 15% to 18% yearly ROI program hasn’t taken off if it’s been around since 2019.

ResClub’s multiple websites receive less traffic than SimilarWeb’s tracking threshold. If this increases, we may credit the new MLM model for the rise.

But after being around for close to three years, why hasn’t ResClub taken off on its own?

When it comes to MLM due diligence, securities fraud is a red-flag deal-breaker. Proceed with great caution.

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